Stocks rallied higher on Wednesday as investors cheered a lighter-than-expected inflation reading for July. The Dow Jones Industrial Average rose over 500 points, while the S&P 500 Index and Nasdaq Composite climbed over 2% and 2.8%, respectively.

Here's how the market settled on Wednesday:

S&P 500 Index (SPY  ): +2.13% or +87.65 points to 4,210.12

Dow Jones Industrial Average (DIA  ): +1.63% or +535.04 points to 33,309.45

Nasdaq Composite Index (QQQ  ): +2.89 points to +360.88 points to 12,854.81

The headline Consumer Price Index (CPI) for July rose 8.5% year-over-year, moderating from June's reading of 9.1%, and flat on a month-to-month basis, according to the Commerce Department's report on Wednesday. Consensus economists were expecting an 8.7% annual increase in July and 0.2% monthly increase from June, according to estimates from Bloomberg.

Core CPI, which excludes more volatile food and gas prices, however, remained unchanged from June's figure at an annual clip of 5.9%.

Wall Street views July's CPI report as a sign that the Federal Reserve may scale back its current pact of interest rate hikes in its upcoming monetary policy setting meetings.

Major tech stocks outpaced the broader market rally on Wednesday as investors poured back into growth names on renewed confidence in the health of the U.S. economy. Shares of Meta Platforms (META  ) rose over 5.6%, while Netflix (NFLX  ) jumped 6%.

On the earnings front, Coinbase (COIN  ) shares rose around 6% on Wednesday amid the broader market rally despite reporting disappointing Q2 results after market close on Tuesday. The cryptocurrency exchange also reported slowing user growth and updated its full year outlook, not expecting only 7 million to 9 million monthly transacting users from 5 million to 15 million.

"Q2 was a test of durability for crypto companies and a complex quarter overall," the company said in a letter. "Dramatic market movements shifted user behavior and trading volume, which impacted transaction revenue, but also highlighted the strength of our risk management program."

Roblox (RBLX  ) shares were also slightly higher after falling earlier in the session as the video game company missed Q2 expectations late Tuesday. The company noted that consumers have scaled back on discretionary spending in the wake of more inflationary pressures and the overall gaming industry is seeing a slowdown from its pandemic-driven demand boom.

Elsewhere, Elon Musk sold $6.9 billion worth of Tesla (TSLA  ) stock, according to regulatory filings, to possibly have more cash on hand if he is legally forced to move forward with his Twitter (TWTR  ) deal.

"In the (hopefully unlikely) event that Twitter forces this deal to close and some equity partners don't come through, it is important to avoid an emergency sale of Tesla stock," Musk tweeted late Tuesday.

Looking ahead, all eyes will be on Disney's (DIS  ) earnings report due out after closing bell.